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NEW QUESTION: 1
All of the following are inventory carrying costs, except:
B. Obsolescence and spoilage.
D. Opportunity cost on inventory investment.
Choice "d" is correct. Inspections. Inspections are part of order costs, not carrying costs.
Choices "a" and "c" are incorrect. Inventory carrying costs include all costs associated with warehousing
(storing) inventory (e.g., storage, insurance, obsolescence, and spoilage associated with holding
Choice "b" is incorrect. The economic cost of holding inventory includes the implicit (opportunity) cost of
foregoing a return on the money invested in inventory.